Project Charter: it’s a term that can instill a sense of uncertainty in even the most seasoned project managers.

Why? Because creating an effective charter is no small feat. It requires strategic thinking, careful planning, and clear communication.

The Project Charter, when done right, serves as the guiding light for your entire project. But if you get it wrong… well, let’s just say things can quickly go off track.

Getting up and running with a new project can be an exciting and nerve-wracking experience. But before the project starts, it is important to get agreement and alignment on the basis for the project, and the authority that is being handed to the project manager.

This is usually achieved through the creation of two artifacts: A business case, and a Project Charter. The business case is a value proposition for the project, and will usually contain background context, options that were considered, and expected benefits (tangible and intangible).

The Project Charter is a document that formally authorizes the existence of the project, and provides the Project manager with the authority to apply resources to project activities. In theory, the project charter is provided to the project manager by the project initiator or sponsor. More often though, the Project Charter is the first thing a Project Manager is tasked with producing.

The charter contains information about the project, that allows the sponsor and the project manager to reach a common understanding of what the project is for, what resources are to be assigned, and what objectives are to be achieved. The charter should also detail any constraints (such as immovable deadlines), and known risks.

Download our free Project Charter template today by scrolling to the bottom of this page and clicking the Download button.

The sections in our Project Charter Template

When to create a project management charter

The project management charter is created pre life cycle, prior to the formal start of the project. It is the authorization of the project charter that signals the start of the project. Once the charter has been authorized, the project can formally begin. The project team and resources will be secured, project structures will be established and work will begin on decomposing the high-level data in the charter into plans, wireframes, and detailed requirements.

Charter Reviews

The project charter should be reviewed regularly throughout a project to ensure the project remains within the constraints defined, and within the authority delegated to the project manager. It is common practice for formal reviews to take place during project closure to determine if the deliverables have been achieved – the savvy project manager will not wait until that point to find out!

How the PMO should use Project Charters

Project charters are important strategy artifacts. Different types of PMO will use them in different ways. They are important for PMO teams that operate within projects in a supporting capacity to the project manager, and they are important for Enterprise PMOs providing oversight on behalf of the business.

Support

Project Support PMO functions can use the Project Charter as a basis for a number of Project Artifacts. Assumptions and Risks from the charter should be transferred to logs, and the Project Manager should be supported to develop risk management plans. Milestone plans will typically be expanded during the planning phase, and the PMO will take care to ensure that decisions made in planning, can be mapped back to the charter. Finally, the PMO should keep a record of projects scope items that are delivered, so that these can be fully accounted for during project closure.

Crucially, the supporting PMO will monitor actual investment and delivery on the project against the authority provided by the charter document. The PMO can support the project by alerting the project manager to issues or situations that may cause the project to veer away from the charter, and can provide support with realignment.

Oversight

The charter is a basis for assessing the ongoing success of the project. Enterprise PMOs will seek regular assurance that the project is continuing in line with the charter, and will remain vigilant for factors within the business, or in other projects, that may have an impact on project success.

Free Project Charter Template

Our free Project Charter template is in Microsoft Word format, and is compatible with Google Docs. You can easily remove our logos and branding and replace it with your own corporate standards. You can download it by clicking on the download button at the bottom of this page.

Depending on the needs of your organization, you may wish to add or remove sections to suit your needs. As long as the sponsor, project manager and governance bodies such as the PMO agree on the content, then you are encouraged to tailor the document to your needs. Charters vary from organization to organization and the best ones are tailored to the environment in which the project will operate. Some organizations will refer to OKRs, others will have a goal statement. Some will include MS Project plans, others will stick with high-level milestones. None of these are inherently right or wrong – as long as your organization align on what is right for you, and how much information needs to be captured to give the project manager the clear authority that they need, and for the sponsor to feel confident that the project has a clear remit.

Project Charter as a communications tool

Whilst the charter document serves an important formal function for approving the project, it is also a valuable communication and marketing tool for those who undertake the project. Because the document provides background, context, projects scope and spending authority, it can be a valuable artifact to help people who are joining the project managers team. It can serve as a guide to the project, explaining key elements at a high level, and helping everyone involved in the project understand the success criteria.

Transferring Information from Charters to Logs

A well-written project charter provides a clear roadmap for transferring crucial data into project logs. This includes potential risks identified during the initial stages and mitigation strategies that may be required later on.

This transfer process ensures all team members are aware of possible issues before they escalate into real problems. For example, if high-level risks have been outlined within your project charter, these can directly populate your risk log providing everyone with visibility and awareness right from inception through completion.

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